Archive for June, 2014
Tuesday, June 24th, 2014
The macro view on HG credit in 2H. Due to limited upside and expected increasing volatility we are strategically market weight (neutral) high grade credit (see: When the tide turns) to start 2H. While there is still some limited room for credit spreads to tighten this cycle, they could also ...
Posted in Uncategorized | Comments Off on Merrill Lynch on Credit Spreads
Tuesday, June 24th, 2014
Via Bloomberg:
BN 06/24 19:34 Dudley ‘Wouldn’t Put Too Much Weight’ on Mid-2015 Fed Rate Rise
+------------------------------------------------------------------------------+
Dudley ‘Wouldn’t Put Too Much Weight’ on Mid-2015 Fed Rate Rise
2014-06-24 19:38:08.112 GMT
By Matthew Boesler
June 24 (Bloomberg) -- Federal Reserve Bank of New York
President William C. Dudley said investor expectations that the
Fed may raise the main ...
Posted in Uncategorized | Comments Off on Dudley Speech
Tuesday, June 24th, 2014
The LongWar Journal blog has a lengthy post on the situation in Iraq and how it may play out. The authors paint a gloomy picture and think that it will be difficult for the government to overcome the insurgents without outside help.
Via Long War Journal:
Analysis: A protracted struggle ahead for ...
Posted in Uncategorized | Comments Off on Detailed Analysis of the Situation in Iraq
Tuesday, June 24th, 2014
Mortgages have bounced off the widest levels of the day and have stabilized 2 to 3 ticks wider to Treasuries. The 4s are the worst performer. One dealer notes that most buying has been of the short covering variety and origination flows are modest.
Posted in Uncategorized | Comments Off on MBS
Tuesday, June 24th, 2014
Via CRT Capital
e
Today at 10:58 AM
• Recent 2-year auctions have seen mixed receptions with tails in April and May at 0.2 bp and 0.4 bp, respectively, but stop-throughs at the prior eight auctions that averaged 0.3 bp.
• The 2-year auction size was reduced another $1 bn to $30 ...
Posted in Uncategorized | Comments Off on Two Year Note Cheat Sheet
Tuesday, June 24th, 2014
Via Bloomberg:
RATES: Shorts and Longs Move to Neutral in Latest JPM Survey
2014-06-24 11:09:14.837 GMT
By Robert Elson
June 24 (Bloomberg) -- The JPMorgan Treasury Client Survey
for the week ended June 23 vs week ended June 16.
* Longs 13 vs 17
* Neutrals 53 vs 45
* Shorts 34 vs 38
* "The all clients survey ...
Posted in Uncategorized | Comments Off on JPM Duration Survey
Tuesday, June 24th, 2014
Via Brown Brothers
The emphasis on central bank forward guidance always seemed like shaky ground to rest monetary policy. After all, central bankers always tried to influence investor expectations. However, as the UK is amply demonstrating, what is euphemistically called "time inconsistency" may limit its effectiveness.
Sterling has been hit by ...
Posted in Uncategorized | Comments Off on FX
Tuesday, June 24th, 2014
Prices of Treasury coupon securities have posted gains in overnight trading with the strongest gains in the longer maturities. The yield on the 5 year note has slipped to 1.686 from 170.1 at 400PM New York time yesterday. Similarly, the yield on the 10 year note has dropped back below ...
Posted in Uncategorized | Comments Off on June 24 2014 Opening
Tuesday, June 24th, 2014
Note that some spreads are at richest levels since October 2007.
Via the good folks at Bloomberg:
IG CREDIT: Volume Higher, Spreads at New Lows; NAB to Price
2014-06-24 10:01:15.377 GMT
By Robert Elson
June 24 (Bloomberg) -- The final Trace count for secondary
trading was $11.8b vs $9.9b Friday and $11b the previous Monday.
10-DMA at ...
Posted in Uncategorized | Comments Off on Spread Market Recap
Monday, June 23rd, 2014
This not is via RBS Securities and the author notes that volume today was just 62 percent of the 10 day moving average. So if you were in a trading room and listened intently you could hear the sound of the overhead accruing with you very own ears.
Via RBS Securities:
Our ...
Posted in Uncategorized | Comments Off on Treasury Flow Stuff